Wednesday, March 20, 2019

Many of the Indian citizens think that there is no need of BSNL in the era of high speed data and uninterrupted services provided by Private Telecom operators. Everyone is writing about BSNL without any knowledge about the organisation, its functioning and limitations.

Recent few disputed articles are published on www.firstpost.com. Before telling about firstpost let us take a look at the recent articles published on firstpost related to BSNL. Two articles published on 14h and 15th march for which links are given below:

* In the first article although writer used the name of AIR INDIA and HAL for indicating loss making PSU's but center of the article is BSNL. Here writer clearly raise concerns over bailout package to BSNL by Government and suggested to dismantle it and sell citing the reasons of accumulated losses of approx 57600 crores.

While it is imperative to say that writer forget to mention the profits booked by the PSU to the tune of approx 44900 crore since 2001-2009. The article also undermines the huge employement provided by PSU (currently 1.73 lakhs ). Providing employment to its citizens is the responsibility of the government, predatory pricing by RJIO and silent support of government has already caused many small Telecom operator to shut their business, leaving employees on their fate.

Total employee strength of all existing private Telecom players collectively is not even 50% of BSNL. BSNL provides connectivity to far flung areas of leh laddakh, North eastern areas and naxalite areas where private operator failed to provide services. What about the social obligation of the government. When matter related to national security arises government can only rely upon BSNL and MTNL. As per the article government should earn money by selling huge assets of the PSU, but if earning of revenue would have been the prime focus of government, there was no need to form BSNL and MTNL. These two companies were built to stabilize the telecom market and avoid monopoly of private players.

* Second article published on March 15 is even more controversial as it manipulates fake figures of customers for operators. As per TRAI report Vodafone - Idea is the largest operator with more than 41 crores customers, followed by AIRTEL 36 crore customers ,RJIO is third operator with 28 crore customers, and BSNL is at 4th place with 11.7 crore customers. But as per writer of the article RJIO is market leader with 27 crore customers, while Vodafone-Idea and AIRTEL both have 10.13 crore customer, and BSNL is having just 2.03 crore customers. Why such fake figures were published on the website is a big question mark?

Then it came to know that first post is owned by network 18 media group. Which itself is the media company owned by Reliance industries of Shri Mukesh Ambani, owner of RJIO.

In place of justifying honest reasons for opposing bailout package to BSNL author provided wrong figures.

What to worry About?

It is surprising see that lots of negative news are being published about BSNL and other PSU's just ahead of Loksabha Elections. The state owned telecom operator is waiting for 4G spectrum since 2017 which was being delayed at the end of DOT and Government but no political party tried to question the Government in two years for delay in the decision of the Governemnet, which earlier charged its predessors for not allowing the telco to compete with private operators by delaying equipment procurement and policy decisions.

While Prime minister announced from Red fort in 2015 that their Government brought BSNL out of losses to operational profits,it is disheartening that he did not utter a single word on media news about possible closure or privatisation of the State owned Telecom operator . Although BSNL has started its 4G services in few circles and likely to launch nationwide on its 3G spectrum shutting 3G service, it can provide VoLTE services only after allotment of 4G spectrum.

While many articles published about huge losses of BSNL and its survival, a detailed analysis of profits and losses since inception of Telecom opeartor has been published on the website bsnlteleservices.com.

As per the article BSNL earned earned profit of Rs. 44990 crores from 2001-2009 and total accumulated losses from 2010-2018 is approx Rs 57878 crores. While total dues which is yet to come to BSNL is Rs. 54500 crores. Which results in net profit of Rs 41612 crore .

If we believe on these figures about BSNL then there is no need to create Hue and Cry . Still when elections are going on there are political reasons to highlight failure at the end of Government true or false.

But the question is ,"Does India Need a Government owned telecom operator or not".

If we think as a common citizen we don't feel like it is required . But if we think about the importance of the Government organisation in telecom we will realise that in every situation of natural disaster , emergency situation Government can rely only its own organisation. As far as huge workforce of the Government organisation is concerned its the weakness as well as the strength . In any case of natural disaster BSNL restores its services ahead of all the private operators, only because of its huge workforce working in all corners of India.

Saturday, March 9, 2019

From thousands of years human has evolved with time. New inventions made by man adopted by others . From Industrial revolution to IT revolution has brought the prosperity in nations taking the lead in innovations.

While Industrial revolution in England, Germany and France created their dominance in the world.

During world war II Japan was one of the major power in the world but Atomic bomb explosion at Hiroshima and Nagasaki demolished its economy .What led Japan to retain its glory is the innovation in technology .Metro Train running in Japan although not the fastest in the world but is the safest and most punctual in the world.

Why India is lagging in Innovation

While we expect our country to be center of innovation still we are importing major technology form Europe and other countries .If India really wants to prosper and become a developed country in coming years, we have to invest in research and development to encourage innovation. While going through list of country-wise expenditure on research and development we can easily understand where we stand in the world. While Israel spends 4.3 % ,South Korea spends 4.29%, Finland spends 3.17%, Sweden spends 3.16% ,Japan spends 3.14% of its GDP on R& D ,India just spends 0.85% of GDP on R&D. India stands at 44th place in the spending on R&D work.

This is the Gap India need to fulfill if we want bring in change in the country and reduce dependence on imports of technology. On the other hand we can say in future R&D and innovation will decide the economic prosperity of the our country .

Importance of R&D

Israel is great example to understand the importance of R&D and innovation for the growth of the nation. Israel once a small nation surrounded by Islamic countries and facing terrorism having a troubled economy but with its political will and transformation in technology now Israel is way ahead in Agriculture, technology, cyberspace ,defence , Infrastructure . Several policies adopted by Narendra Modi Government are somewhat similar to thesteps taken by Israel's Netanyahu Government. Promoting private sector , limiting Government sector and cutting Government spending , reducing bureaucracy involvement are the few steps which seems to be inspired from the Israel's reforms. Although India doesn't spend too much on R&D but present Government has taken various Initiatives which may Improve R&D work in India.

1.Make in India

Make in India is an initiative to bring in major companies in India for production in India .Thus reducing India's dependence on Imports and bring new technology. While it will cut imports it will increase exports . India a attractive destination for investment due to low cost labour and huge young workforce. While many countries are struggling to find young workforce ,India is the youngest nation of the world.

2.Skill India

While India is having sufficient young workforce, biggest challenge is that India is not having sufficient skilled labour .To overcome this difficulty Government of India launched this scheme to make young Generation skilled by providing training in various fields.

3.Start Up India

This is an Initiative to promote Entrepreneurship in the young Generation ,while earlier setting up business in India was quite difficult India has shown keen interest to streamline process to set new start Ups easily so that young Entrepreneurs which used to go abroad to start a business could start their business easily in India. Government of India set up a separate Start Up fund tom promote start ups in India.

Although Indian Government not made very significant expenditure in R&D in these years .It has promoted R&D by taking Initiative of Make in India and Start Up India .Although in shorter term results are not visible but in longer run definitely it is going to effect economy and national development.